South Korean stocks have more than tripled over the last 16 months, trouncing every other country.
Source: Charlie Bilello
Hawkish Hold from the BOJ Amid Rising Inflation Risks
The Bank of Japan kept its policy rate unchanged at 0.75% in a split 6–3 decision, with three members pushing for a hike to 1% as Middle East tensions raise upside inflation risks. The bank sharply revised its 2026 core CPI forecast to 2.8% (from 1.9%) while cutting growth expectations to 0.5% (from 1%). Markets are now pricing in 15bps of tightening by June, the yen is strengthening toward 159, and the Nikkei 225 is down around 1%, as higher oil prices threaten profits and household incomes. Source: Joumanna Nasr Bercetche (@JoumannaTV)
Japan's core inflation accelerated for the first time in five months, rising to 1.8% in March (versus +1.6% seen in February) as the Iran war fuels worries around energy prices.
The Core CPI number is matching forecasts and is staying below BOJ’s 2% target for a second month. Headline inflation came in at 1.5%, compared with 1.3% in February, staying below the central bank’s 2% target for a second straight month. The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy, dipped to 2.4% from February’s 2.5%, marking its lowest level since October 2024. Rising oil prices have prompted government subsidies to cap gasoline costs, though these may be expensive to sustain. Analysts warn prolonged high energy prices could push core inflation toward 3%, while weakening household purchasing power. The Bank of Japan is expected to hold rates steady for now but maintain a bias toward future hikes as inflation expectations rise and economic risks persist. Source: CNBC
South Korea's import costs are surging at a pace not seen in nearly 30 years.
Import prices jumped +16.1% MoM and +18.4% YoY in March, the largest monthly spike since January 1998. This comes as Dubai crude oil prices nearly doubled in a month, to an average of $128.52 a barrel, while the Korean won weakened -2.6% against the US Dollar over the same period. As a result, raw material import prices, including crude and other mining products, rose more than +40% MoM, with oil-related products such as naphtha and jet fuel amplifying cost pressures for manufacturers. Higher import costs will filter through to consumer prices over time, eroding household purchasing power and dragging on domestic demand and economic growth. Source: Global Markets Investor
Meanwhile... Power is shifting in Vietnam, one of Asia’s fastest-growing economies. Here's why you should pay attention.
Vietnam’s new president, To Lam, has consolidated both party and state leadership — a first in decades. This move signals faster decision-making, deeper reforms, and a more centralized vision for growth. What’s happening: • Stronger leadership control • Aggressive anti-corruption drive • Government restructuring at scale (150,000 bureaucratic jobs cut; 8 ministries abolished) • Private sector pushed to the forefront. 10%+ GDP growth targeted. And he’s just getting started. Why it matters: Vietnam is a critical node in global supply chains and a key alternative to China. But with rising reliance on the US and external shocks (energy, geopolitics), the stakes are higher than ever. The big question: Can centralized power accelerate growth — without losing internal consensus? This is not the Vietnam of 10 years ago. This is a nation that has found its footing — and is now running. Vietnam is entering a defining chapter. Source: FT
Yen at a critical juncture intervention looms
The Japanese Yen is once again near 160 USD/JPY, the level that triggered massive government interventions in 2024, with trillions of yen spent to defend the currency. Top official Atsushi Mimura warns that “all possible measures” could be taken. Rising oil dependence and record gas prices are straining the economy, making a weak yen more than a market issue it threatens daily life and inflation. History shows that a break above 160 would likely trigger swift intervention. Source: Global Markets Investor, Bloomberg
Asian nations rely more on energy imports from the Strait of Hormuz than Europe, the US, or Oceania.
Source: Simon Kuestenmacher @simongerman600
America ALLOWS Modi Regime purchase oil from Russia temporarily.
American EXPECTS, India will purchase costlier oil from it. Narendra Modi’s regime is a puppet in the hands of America who has TRADED ‘India’ in return for support to Rule over India. Source: Raju Parulekar
